In England’s evolving private rented sector, fairness and transparency are becoming legal requirements, not just best practice. Under the Renters’ Rights Act 2025, new rules coming into force from 1 May 2026 will ban rental bidding.
This means landlords and letting agents must advertise a clear asking rent and must not ask for, encourage, or accept offers above that amount.
In this guide, we explain how rental bidding rules are changing, what landlords can and can’t do under the new legislation, and how to stay compliant while keeping tenancies moving.
Why rental bidding is being banned
Rental bidding occurs when prospective tenants compete for a property by offering more than the advertised rent.
While this practice has become more common in high-demand areas, it creates an uneven playing field and can push tenants into offering more than they can realistically afford.
The Renters’ Rights Act 2025 introduces a ban on this practice to improve fairness and transparency across the lettings market. The aim is to ensure that tenants are assessed based on their suitability, not on how much they are willing or able to pay above the asking price.
What the new rules mean in practice
Under the Renters’ Rights Act, landlords and letting agents must:
- Advertise a specific rental price (not a range)
- Avoid inviting or encouraging offers above the advertised rent
- Not accept a higher rent than the advertised amount once the property has been marketed
- Avoid using language such as “offers over” or “best and final offers” in relation to rent
- Not disclose competing offers in a way that encourages tenants to bid against one another
These rules apply across all forms of advertising, including property portals, websites, social media, and direct communication with applicants.
Changes to rent in advance
Alongside the rental bidding ban, the Renters’ Rights Act also introduces restrictions on rent in advance.
Once a tenancy agreement has been signed and before the tenancy begins, landlords will only be able to request:
- Up to one month’s rent in advance, or
- Up to 28 days’ rent where the rental period is shorter than one month
This change is designed to improve accessibility and prevent tenants from being excluded due to high upfront costs.
Adapting your approach to pricing
With rental bidding no longer permitted, landlords will need to take a more structured and transparent approach to pricing.
Setting a realistic, market-aligned asking rent from the outset is essential. This helps attract suitable applicants quickly and reduces the risk of void periods.
Consistency is also key. All applicants should be assessed using the same criteria, without favouring those who may have previously been willing to offer more.
A clear pricing strategy not only supports compliance but also creates a smoother and more professional lettings process.
Practical ways to stay compliant
Adapting to these changes does not mean compromising on tenant quality. Instead, it requires a more robust and consistent approach to tenant selection.
Key steps include:
- Strengthening tenant referencing through income checks, credit history, and previous landlord references
- Applying consistent selection criteria across all applicants
- Keeping clear records of the advertised rent and application process
- Ensuring all marketing materials reflect a fixed rental price
- Avoiding informal conversations that could be interpreted as encouraging higher offers
Guarantors can also provide additional reassurance where needed, without placing extra pressure on tenants.
Working with a professional letting agent can help ensure your processes remain both efficient and fully compliant.
Keeping tenancies moving in a changing market
In a fast-moving rental market, efficiency remains important. However, practices such as encouraging higher offers or relying on large upfront payments are no longer permitted under the new rules.
A transparent and structured approach is now essential. Setting the right asking rent, communicating clearly with applicants, and following a consistent process will help maintain momentum while aligning with the law.
Tenants are also increasingly aware of their rights. Prioritising fairness not only reduces compliance risk but also helps build trust and attract long-term, reliable tenants.
The importance of staying compliant
Failure to comply with the rental bidding ban can result in enforcement action by local authorities.
Under the Renters’ Rights Act framework:
- Breaches can lead to financial penalties of up to £7,000
- More serious or repeated non-compliance can result in penalties of up to £40,000 or prosecution
Staying informed and adapting your approach is essential as the regulatory landscape continues to evolve.
How Parkers can support you
Keeping up with legislative change can be challenging, particularly as new rules reshape how properties are marketed and let.
At Parkers, our experienced lettings teams stay ahead of regulatory developments to ensure your approach remains compliant and competitive. From setting the right asking rent to sourcing and referencing tenants, we provide tailored support to help you navigate the changing market with confidence.
If you’re unsure how the Renters’ Rights Act affects your rental strategy, or you’d like expert guidance on securing the right tenants without delays, Parkers is here to help.
Get in touch with your local Parkers branch today and let us help you keep your tenancies moving, compliantly and confidently.
